But Firefly’s launch comes less than a month after the chief inspector for schools in Wales Ann Keane warned literacy remains a ‘major issue’ in schools.

She admitted inspectors aren’t picking up “systemic improvements” she wants to see, but said she was confident measures put in place by the Welsh Government to raise standards “can make a big difference” .

Low reading standards in Welsh schools have been under the spotlight for several years after Wales’s poor performance in international league tables for literacy and numeracy.

Earlier this month award-winning Welsh children’s author Jennifer Sullivan added her voice to the debate blaming television and screens for the decline in reading.

Describing a recent workshop with pupils preparing for high school she said: “In a class of around 30 children, only three or four could write a grammatical, correctly spelled and punctuated sentence – or, indeed, a legible sentence.

“Their ability to handle the language was far below the standard I would expect from a 10-year-old.”

Ms Thomas hopes Firefly Press may address some of these problems by finding and publishing authors who inspire children to switch of their screens and read.

“We aim to entertain and inspire,” she said.

“We aim to publish the best in storytelling, writing and design for a Welsh, UK and world market.”

The new company has won its first contract from the Welsh Books Council to publish a series of books for seven to nine-year-olds, based in Wales, which will be in shops and available as ebooks early next year.

The contract is being backed with Welsh Assembly funding to get people reading and the books will have a strong Welsh focus.

The company will also publish stories for nine to 12-year-olds and young adult fiction from next year.

Welsh Books Council chief executive Elwyn Jones said: “We’re pleased to fund this exciting new series of children’s books from Wales.

“It is encouraging to see a brand new company broadening the range of titles available in this important area of publishing.

“We hope that the series will instil an enduring love of books in a new generation of readers.”

Firefly Press is being officially launched at the Hay Festival on June 1 when it will also announce a competition to find a debut author to write a story set in Wales.